ON POLITICS

ON POLITICS; It's Not the Economy, It's the Monthly Bills

By Jennifer Preston

Published: September 28, 1997

TRENTON—
The national economy must be doing better if voters in New Jersey, and Virginia, the only states with gubernatorial elections this year, are preoccupied with the cost of running a car.

In New Jersey, it is the cost of automobile insurance that is dominating the debate in the race between Governor Whitman and her Democratic opponent, State Senator James E. McGreevey.

In Virginia, it is a personal property tax on cars that is infuriating voters and prompting both the Republican and Democratic gubernatorial candidates there to say they will consider eliminating that tax and come up with alternative sources of revenue.

So, why auto insurance and excise taxes? As one political expert said, voters focus on minor irritants during a strong economy when they are not as worried about the next paycheck. It would be easy to conclude that voters here in New Jersey, and perhaps in Virginia, are just cranky and have nothing else to complain about it.

But interviews with dozens of New Jerseyans over the last few weeks suggest that they are not just bellyaching. There is a high level of frustration over the cost of auto insurance, as well as property taxes, here in New Jersey because voters do not believe that they are getting ahead despite the strength in the economy and Governor Whitman's tax cuts.

Only 16 percent of New Jerseyans surveyed in the most recent New York Times/CBS News Poll believe that their state income taxes have gone down. Another 28 percent said that their income taxes have gone up. The the largest share of respondents, 43 percent, said their state income taxes had remained the same.

Why did 40 percent of those surveyed in the same poll spontaneously cite the cost of auto insurance as their top concern, and property taxes as their next biggest gripe? Their concerns over these two issues reflect the growing financial pressures on many working families and senior citizens to make ends meet. Unlike the telephone bill or the electric bill, or even the mortgage, the property tax bill and the auto insurance bill are two bills that voters believe government can lower. They are two measures that they can point to and argue, rightfully, that government can do something about.

As everyone knows by now, New Jerseyans pay the highest auto insurance rates in the nation. The average cost of auto insurance per vehicle in the state is $1,113. And according to a recent study by the Institute on Taxation and Economic Policy in Washington, New Jerseyans also pay the highest property tax bills. The average young married couple who own a home in New Jersey paid $3,562 in property taxes in 1995. The next highest property tax bills were in Connecticut. The average bill there is $2,573.

The Dow may be soaring, but not everyone in the state is benefiting from the Wall Street boom. New Jersey may be on the verge of replacing all of the jobs that the state lost in the recession of the late 1980's and early 1990's. However, many of the jobs lost were in manufacturing, where workers without college educations could rely on getting decent salaries and benefits. Many of the new jobs are in the service industry. They do not pay nearly as well, and they do not always come with benefits.

Meanwhile, property taxes and automobile insurance bills continued to rise over the last four years, further squeezing already tight household budgets across the state. And while Governor Whitman has taken some steps to address both bills, polls show that voters do not think that she has done enough.

''In our family, two 80-year-old widows had to give up their homes because they could not afford the property taxes on their homes,'' said Jean Phillips, 50, of Roselle. ''The property taxes on one house was $7,800 a year. On the other house, the property taxes were $5,500. This is not the American way. And the cost of automobile insurance is outrageous.''

Mrs. Phillips said that she voted for the Governor in 1993. ''I will not vote for her again,'' she said. ''I don't think that she has done anything.''

Mr. McGreevey is seeking to tap into this frustration and anger among voters who want government to do something to ease their daily financial pressures. Last week, he unleashed his first television advertisement spot, reminding residents that they are paying the nation's highest auto insurance and property tax rates. His campaign advisers said that they will focus on these two issues and education.

Mr. McGreevey is getting the attention of voters by recognizing their plight. But empathy alone will not help him win the State House.

This campaign is really not about auto insurance and property taxes. It is about paying the monthly bills without relying on the line of credit in your checking account.

In the final weeks leading up to the Nov. 4 election, voters are hoping that the candidates will present their plan to bring down monthly household expenses by addressing those two big bills. Folks are just looking for a break.